Section 8 Income Limits: How They Work

The most common question about Section 8 is "what is the income limit?" — and the honest answer is that it depends entirely on which county you live in and how many people are in your household. A household income that qualifies comfortably in one county can be well over the limit in the next county over.

This guide explains the system so you can find and interpret the right number for your situation.

Why there is no national income limit {#no-national}

HUD calculates income limits from Area Median Income (AMI) — the median household income for a specific metropolitan area or non-metropolitan county. Because median incomes vary enormously across the country, so do the limits.

HUD publishes updated limits annually, typically taking effect partway through the year. Limits are also subject to caps and floors that prevent them from swinging too sharply year to year, so the figure does not always track local income changes exactly.

The practical consequence: any specific dollar figure you see quoted online is only meaningful if it names your county and your household size, and states the year. Always verify against HUD's own published data.

The three AMI tiers {#ami-tiers}

HUD defines three income categories used across its programs:

Tier	Threshold	Role in the voucher program
Extremely low income (ELI)	30% of AMI, or the federal poverty line if higher	At least 75% of newly issued vouchers must go to this group
Very low income (VLI)	50% of AMI	The general admission ceiling for the Housing Choice Voucher program
Low income	80% of AMI	Used by other HUD programs; limited voucher relevance

For Section 8 specifically, the number that matters most is 50% of AMI — the general ceiling for admission — with the understanding that the federal ELI targeting requirement means households nearer 30% of AMI have materially better prospects of actually being served.

A small number of admissions can occur above 50% of AMI in specific circumstances, but as a planning assumption, 50% is the line.

How household size changes the limit {#household-size}

Limits scale with household size. HUD publishes a separate figure for households of one through eight people, with a formula for larger households. A four-person household's limit is meaningfully higher than a one-person household's in the same county.

Count everyone who will live in the unit, including children and any household member with no income. Household size for income-limit purposes is not the same as the bedroom size of voucher you will be issued — that is a separate determination based on the PHA's occupancy standards.

Looking up your county's limits {#look-up}

Use HUD's official tool: HUD Income Limits Documentation System

The process:

1. Select the current year
2. Select your state
3. Select your county or metropolitan area
4. Read the row for your household size

The output shows the 30%, 50%, and 80% figures side by side. For voucher eligibility, compare your household's expected annual gross income against the 50% column, and note where you fall relative to the 30% column.

Your local PHA also publishes the limits it applies, and calling to confirm is worthwhile — the PHA is who actually makes the determination.

What counts as income {#what-counts}

Generally counted (annual gross):

• Wages, salaries, tips, overtime, and bonuses
• Net income from self-employment or a business
• Social Security, SSI, and SSDI
• Pensions, annuities, and retirement income
• Unemployment and workers' compensation
• TANF and other public assistance
• Alimony and child support actually received
• Regular contributions or gifts from people outside the household
• Net income from assets, including rental property and interest

Generally not counted:

• One-time lump sums such as inheritances, insurance payouts, or tax refunds
• Earned income of most dependent full-time students above a threshold amount
• Income of live-in aides
• Most foster care payments
• Certain educational scholarships used for tuition
• Reimbursements for medical expenses

The list has more nuance than can be captured here, and PHAs apply it with some variation. If a category of your income is ambiguous, ask the PHA directly rather than assuming.

Deductions that lower your adjusted income {#deductions}

Eligibility is assessed on annual gross income, but your rent contribution is calculated on adjusted income — gross income minus allowable deductions. Standard deductions include:

• A per-dependent deduction for each household member under 18, each full-time student, and each disabled family member
• An elderly or disabled family deduction for households where the head, spouse, or sole member is 62+ or disabled
• Childcare expenses that enable a household member to work, seek work, or attend school
• Unreimbursed medical expenses above a threshold, for elderly or disabled households
• Disability assistance expenses that enable a household member to work

These deductions do not change whether you are eligible — that test uses gross income — but they meaningfully reduce the rent you pay once you have a voucher. Document them thoroughly.

If you are over the limit {#over-limit}

A few things worth checking before concluding you do not qualify:

• Verify you used the right county. Metropolitan area definitions do not always match intuition, and neighboring counties can have different limits.
• Verify household size. Everyone who will live in the unit counts, including children and non-earning members.
• Check whether some of your income is excluded. Lump sums, certain student income, and live-in aide income do not count.
• Consider nearby jurisdictions. You may apply to PHA waiting lists outside where you currently live, and limits differ by county.
• Reassess if circumstances change. Income limits are recalculated annually and your own income may change. Being over the limit today does not prevent applying later.

Other programs may also fit — public housing, project-based Section 8, LIHTC properties, and state or local rental assistance each have their own criteria.

What happens if your income changes {#changes}

Once you hold a voucher, you must report income and household composition changes to your PHA, typically within a short window — often 10 business days. The PHA recalculates your rent contribution accordingly.

Rising income does not automatically end your assistance. As income increases, your share of the rent increases and the subsidy shrinks; assistance ends when your contribution would cover the full rent. Many PHAs also operate a Family Self-Sufficiency program that places a portion of the resulting rent increase into an escrow account you can claim later.

Failing to report changes is treated seriously and can result in termination and repayment obligations. Report promptly and in writing, and keep a copy.

Related guides

• Section 8 eligibility: who qualifies
• Open Section 8 waiting lists and how to find them